Inter Parfums, Inc. (NASDAQ GS: IPAR) today reported results for the fourth quarter and year ended December 31, 2011.
Fourth Quarter 2011 Compared to Fourth Quarter 2010:
- Net sales rose to $189.1 million, a 68% increase from $112.5 million; at comparable foreign currency exchange rates, net sales rose 61% for the period;
- European-based operations generated net sales of $169.6 million, up 78% from $95.5 million;
- Net sales by U.S.-based operations were up nearly 15% to $19.5 million from $17.0 million;
- Gross margin was 61.7% compared to 59.0%;
- S, G & A expense as a percentage of sales was 56.5% compared to 48.0%;
- Operating margins were 4.8% of net sales compared to 11.0% of net sales;
- Net income attributable to Inter Parfums, Inc. was $4.1 million as compared to $6.2 million; and,
- Basic and diluted earnings per share were $0.13 compared to $0.20.
Thus, net sales for the year ended December 31, 2011 increased 34% to a record $615.2 million from the prior year’s $460.4 million; in constant dollars 2011 net sales rose 28%. Net income attributable to Inter Parfums, Inc. rose 21% to a record $32.3 million or $1.05 per diluted share from $26.6 million or $0.87 per diluted share in 2010.
Jean Madar, Chairman & CEO of Inter Parfums noted, “2011 was far and away the best year in our history. Not only did we achieve record sales and profits, but we gained further control over product distribution, executed the largest new product launch in our history, enjoyed major success introducing fresh products for our newest brands, and added three valuable names to our brand portfolio: Balmain, Repetto and Anna Sui.”Mr. Madar went on to say, “Several of our prestige portfolio brands showed stellar sales gains. Notably Burberry sales rose 20% for the year in local currency due to the launch of Burberry Body and the staying power of the brand’s historic lines. With the debut of Montblanc Legend, sales were more than three times greater than in 2010, when legacy brand sales were limited to the second half only. In 2011, we recorded first time sales for the Jimmy Choo signature fragrance which far exceeded expectations; and in the latter part of the year, sales of Boucheron products began. New product launches, including Too Too for Betsey Johnson, and the continued distribution of specialty retail products overseas, were among the reasons for the increase in sales by U.S.-based operations.” On the subject of Burberry, Mr. Madar then added, “Discussions that began in December between Interparfums SA and Burberry on the creation of a new operational structure for the fragrance and beauty business are continuing.”